wave, grant. grant said, i think there should be some changes. we should learn from what happened at sandy hook. i feel really bad. and then julia said -- julia, where are you? there you go. i'm not scared for my safety. i'm scared for others. i have four brothers and sisters, and i know i would not be able to bear the thought of losing any of them. and these are our kids. this is what they're thinking about. and so what we should be thinking about is our responsibility to care for them. and shield them from harm. and give them the tools they need to grow up and do everything that they're cable of doing, not just to pursue their own dreams, but to help build this country. this is our first task as a

society. keeping our children safe. this is how we will be judged. and their voices should compel us to change. and that's why last month i asked joe to lead an effort, along with members of my cabinet, to come up with some concrete steps we can take right now to keep our children safe. to help prevent mass shootings. to reduce the broader epidemic of gun violence in this country. and we can't put this off any longer. just last thursday, as tv networks were covering one of joe's meetings on this topic, news broke of another school shooting, this one in california. in the month since 20 precious children and six brave adults were violently taken from us at

sandy hook elementary, more than 900 of our fellow americans have reportedly died at the end of a gun. 900. in the past month. and every day we wait, that number will keep growing. so i'm putting forward a specific set of proposals based on the work of joe's task force. and in the days ahead, i intend to use whatever weight this office holds to make them a reality. because while there is no law or set of laws that can prevent every senseless act of violence completely, no piece of legislation that will prevent every tragedy, every act of evil, if there's even one thing we can do to reduce this violence, if there's even one

life that can be saved, then we've got an obligation to try. and i'm going to do my part. as soon as i'm finished speaking here, i will sit at that desk and i will sign a directive giving law enforcement, schools, mental health professionals and the public health community some of the tools they need to help reduce gun violence. we will make it easier to keep guns out of the hands of criminals by strengthening the background check system. we will help schools hire more resource officers if they want them. and develop emergency preparedness plans. we will make sure mental health professionals know their options for reporting threats of violence. even as we acknowledge that someone with a mental illness is far more likely to be a victim of violent crime than the perpetrator. and while year after year those who oppose even modest gun

safety measures have threatened to defund scientific or medical research into the causes of gun violence, i will direct the centers for disease control to go ahead and study the best ways to reduce it. and congress should fund research into the effects that violent video games have on young minds. we don't benefit from ignorance. we don't benefit from not knowing the science of this epidemic of violence. now, these are a few of the 23 executive actions that i'm announcing today. but as important as these steps are, they are in no way a substitute for action from members of congress. to make a real and lasting difference, congress, too, must act. and congress must act soon. and i'm calling on congress to pass some very specific proposals right away.

first, it's time for congress to require a universal background check for anyone trying to buy a gun. [ applause ] the law already requires licensed gun dealers to run background checks. and over the last 14 years that's kept 1.5 million of the wrong people from getting their hands on a gun. but it's hard to enforce that law when as many as 40% of all gun purchases are conducted without a background check. that's not safe. that's not smart. it's not fair to responsible gun buyers or sellers. if you want to buy a gun, whether it's from a licensed dealer or a private seller, you should at least have to show you are not a felon or somebody legally prohibited from buying one. this is common sense.

and an overwhelming majority of americans agree with us on the need for universal background checks. including more than 70% of the national rifle association's members, according to one survey. so there's no reason we can't do this. second, congress should restore a ban on military style assault weapons and a ten-round limit for magazines. [ applause ] the type of assault rifle used in aurora, for example, when paired with high capacity magazines, has one purpose. to pump out as many bullets as possible as quickly as possible. to do as much damage using bullets often designed to inflict maximum damage. that's what allowed the gunman in aurora to shoot 70 people. 70 people. killing 12. in a matter of minutes.

weapons designed for the theater of war have no place in a movie theater. a majority of americans agree with us on this. by the way, so did ronald reagan. one of the staunchest defenders of the second amendment who wrote to congress in 1994 urging them -- this is ronald reagan speaking -- urging them to listen to the american public and to the law enforcement community and support a ban on the further manufacture of military style assault weapons. [ applause ] finally, congress needs to help rather than hinder law enforcement as it does its job. we should get tougher on people who buy guns with the express purpose of turning around and selling them to criminals. and we should severely punish anybody who helps them do this.

since congress hasn't confirmed a director of the bureau of alcohol, tobacco and firearms in six years, they should confirm todd jones, who will be -- who has been acting. and i will be nominating for the post. [ applause ] and at a time when budget cuts are forcing many communities to reduce their police force, we should put more cops back on the job. and back on our streets. now, let me be absolutely clear. like most americans, i believe the second amendment guarantees an individual right to bear arms. i respect our strong tradition of gun ownership. and the rights of hunters and sportsmen. there are millions of responsible, law-abiding gun owners in america who cherish their right to bear arms for hunting or sport or protection

or collection. i also believe most gun owners agree that we can respect the second amendment while keeping an irresponsible law breaking few from inflicting harm on a massive scale. i believe most of them agree that if america worked harder to keep guns out of the hands of dangerous people, there would be fewer atrocities like the one that occurred in newtown. that's what these reforms are designed to do. they're common sense measures. they have the support of the majority of the american people. and, yet, that doesn't mean any of this is going to be easy to enact or implement. if it were, we'd already have universal background checks. the ban on assault weapons and high capacity magazines never would have been allowed to expire. more of our fellow americans might still be alive celebrating birthdays and anniversaries and

graduations. this will be difficult. there will be pundits and politicians and special interest lobbyists publicly warning of a tyrannical, all out assault on liberty. not because that's true. but because they want to gin up fear or higher ratings or revenue for themselves. and behind the scenes, they'll do everything they can to block any common sense reform and make sure nothing changes whatsoever. the only way we will be able to change is if their audience, their constituents, their membership says, this time must be different. this time we must do something to protect our communities and our kids. i will put everything i've got into this, and so will joe. but i tell you, the only way we

can change is if the american people demand it. by the way, that doesn't just mean from certain parts of the country. we're going to need voices in those areas, in those congressional districts, where the tradition of gun ownership is strong to speak up. and to say this is important. it can't just be the usual suspects. we have to examine ourselves and our hearts. and ask ourselves what is important. this will not happen unless the american people demand it. if parents and teachers, police officers and pastors, if hunters and sportsmen, if responsible gun owners, if americans of every background stand up and say, enough, we've suffered too

much pain and care too much about our children to allow this to continue, then change will -- change will come. that's what it's going to take. you know, in the letter that julia wrote me, she said, i know that laws have to be passed by congress. but i beg you to try very hard. julia, i will try very hard. but she's right. the most important changes we can make depend on congressional action. they need to bring these proposals up for a vote. and the american people need to make sure that they do. get them on record. ask your member of congress if they support universal background checks to keep guns out of the wrong hands. ask them if they support renewing a ban on military style assault weapons and high capacity magazines.

and if they say no, ask them why not. ask them what's more important, doing whatever it takes to get an "a" grade from the gun lobby that funds their campaigns or giving parents some peace of mind when they drop their child off for first grade. [ applause ] this is the land of the free, and it always will be. as americans, we are endowed by our creator with certain inail nabl rights that no man or government can take away from us. but we've also long recognized as our founders recognized that with rights, come responsibilities. along with our freedom to live our lives as we will, comes an obligation to allow others to do

the same. we don't live in isolation. we live in a society. a government of and by and for the people. we are responsible for each other. the right to worship freely and safely, that right was denied to sikhs in oak creek, wisconsin. the right to assemble peaceably, that right was denied shoppers in clackamas, oregon. and moviegoers in aurora, colorado. that most fundamental set of rights to life and liberty and the pursuit of happiness, fundamental rights that were denied to college students at virginia tech. and high school students at columbine. and elementary school students in newtown. and kids on street corners in chicago on too frequent of basis

to tolerate. and all the families who've never imagined that they'd lose a loved one to a bullet. those rights are at stake. we're responsible. and when i visited newtown last month, i spent some private time with many of the families who lost their children that day. one was the family of grace mcdonnell. grace's parents are here. grace was 7 years old when she was struck down. a gorgeous, caring, joyful little girl. i'm told she loved pink. she loved the beach. she dreamed of becoming a painter. and so just before i left chris, her father, gave me one of her

paintings. and i hung it in my private study. just out of the oval office. and every time i look at that painting, i think about grace. and i think about the life that she lived. and the life that lay ahead of her. and mostov of all, i think abou how when it comes to protecting the most vulnerable among us, we must act now. for grace. for the 25 other innocent children and devoted educators who had so much left to give. for the men and women in big cities and small towns who fall victim to senseless violence each and every day. for all the americans who are counting on us to keep them safe from harm. let's do the right thing. let's do the right thing for them and for this country that we love so much. thank you. i'm going to sign these orders.

[ applause ] [ applause ] welcome to the halftime report, everyone. i'd like to welcome you here. 17 minutes past noon in the east where we have been listening to president obama lay out what certainly can be called the most aggressive and sweeping gun

control measures in many decades. n this country. nearly two dozen in all. a combination of executive orders and proposals which will have to go through congress. those include universal background checks and also a renewed ban on military style assault weapons. including a limit on high capacity magazines. the president knows it will not be easy to do this task, saying, it will be difficult. this will be difficult. yet they are common sense proposals, in his words. eamon javers is live at the white house. he's been listening in. eamon, the president knows it's not going to be easy. what are the chances any of these proposals get through congress? >> reporter: well, scott, these were solemn and somber remarks from the president here as you saw, surrounded by some of the families of those affected by gun violence. but also as you say, leaven with a doze of political reality here. a lot of those here in washington think a renewal of the assault weapons ban is dead on arrival in the house of representatives.

not something likely to pass. a lot of these other things the president can accomplish. as you saw there, sitting down to sign some executive actions directing the federal government to take steps immediately. the president can do that without congress's approval as he's doing today. so the white house emphasizing in a background call with reporters earlier today that a lot of this will actually go into effect today. the rest of it is going to be a big political battle up on capitol hill. as we saw, this battle is personal. the nra yesterday releasing an ad which says that the president is an elitist hypocrite for allowing his daughters to be protected by armed secret service agents while he opposes armed guards in schools across the country. that drew a very sharp review from white house press secretary jay carney today calling that ad cowardly. clearly this is a personal battle. a deeply political battle. and it's going to be very tough to get all of this passed up on capitol hill. the president saying here we have to do something and we have to do it now, scott. >> eamon, what's most likely? the universal background checks that would have the best chance of getting through congress? >> reporter: yeah.

i think if you listen to the comments of joe biden he's saying we shouldn't let the perfect be the enemy of the good here. clearly he's envisioning a system where they could pass some of these things in separate measures. universal background checks definitely has a more likely chance of passing up on capitol hill than, say, the assault weapons ban. of course, some of the executive actions which will go into effect today include things like allowing the military -- the medical establishment of the federal government to study gun violence. that's something they've been prohibited to do before to advocate for gun violence. the president saying he's not asking them to advocate. he's just asking them to study the root causes and tabulate gun violence incidents so scientists can learn a little bit more about why some of these mass assaults happen and who it is who's doing them. >> the president's relationship is likely to grow a bit more contentious as a result of all this, eamon. what sort of impact can we expect on the debt ceiling negotiations? >> reporter: well, clearly, everything in washington is linked, right? because both of these things are moving at the same time.

both are deeply fundamental issues. both affect your vision of how the federal government ought to operate, what kind of government we ought to have in this country. the president just now in those remarks about gun violence saying that it represents a clash of rights. the right of freedom of religion for sikhs who are gunned down in a place of worship or free tom of assembly for those who are just trying to go shopping or see a movie versus second amendment rights to bear arms. these are very fundamental issues. same with the debt ceiling. it's a very fundamental sense of how big the government should be. both of those are going to be very hard fought and they're going to be hard fought, as you say, at exactly the same time. >> thanks so much. eamon javers for us outside the white house reacting to those proposals today from the president. when we come back from a short break, we'll consider the financial fallout from the president's announcement today. certainly a lot of publicly traded companies that may be impacted as a result of all of this. we're also going to speak with some market mavens, if you will. talk about the stock market and action there. bill nygren, many of you know him.

he'll give you stock picks you'll certainly want to hear. rick reeder, one of the best bond guys on the street is talking stocks today. you'll certainly want to hear what his thoughts are there. then we're going to cover all of the big stock stories of this busy day. whether it's facebook, the blowout earnings from goldman sachs, more on apple and everything else. we'll see you in two minutes.

welcome back to the fast money halftime report. i'm michelle caruso-cabrera at the breaking news desk. the state department confirms a

number of americans are among 41 people being held hostage in algeria. bp, british petroleum confirms an attack occurred overnight in a natural gas production facility in the southeastern part of the country. it's a natural gas plant operated in a joint venture by bp of the uk. stat oil of norway. and also sonatrach, the algerian oil company. what we are showing you is production facility courtesy of google maps. that is in amenis on the border of libya. journalists in the country of mauritania say they have been in contact with the militants and they have been told this attack is in retaliation for french air strikes against islamic militants in mali which also borders on algeria. the state department is set to hold a briefing at 1:00 p.m. we hope to get more details. once again, a number of americans being held hostage as a result of a gas -- of an armed attack on a gas production facility in algeria in northern

africa. scott, back to you. >> michelle, thanks so much. michelle caruso-cabrera for us. we'll continue to follow that story throughout the day. we're also watching a number of big stories in the markets today. goldman's blowout earnings report. apple's big rebound. boeing's growing problems with the 787. of course, the reaction to facebook's big announcement yesterday as well. got the traders here trading today's action with pete najarian, josh brown, mike murphy. pete, i'll begin with you. a lot of big stories to talk about today. most interesting one to you is what? >> right now i think it's goldman sachs. the fact we expected to hear some positive stuff coming from both jpmorgan and goldman sachs. but they overdelivered in my opinion. i think in both cases i was a little surprised by the reaction later into the session as far as the premarket session with jpmorgan. initially it moved to the upside. then pulled back. now moving. traded through 52-week highs. i look at goldman sachs, morgan stanley, the rest of the investment banks world and rest of the money center banks. i still see the financials as the backbone of this market. i continue to see the volatility pulling back across the market.

i will tell you this. look at the x lf. all the way out into june. thighest volatility level, implied volatility in the market now is all the way out in june. yet they're buying june 19 calls, 140,000. i think banks continue to go to the upside. >> next stop for goldman? >> murph and i were talking in the break. clearly breaking through these new highs i think you can put a 150 number on this at this point in time. i'm not sure if it hits it by the end of the week. maybe with better earnings we do. >> boeing. growing problems with the 787. they're becoming more serious. >> i mean, it's very serious. we spoke about a week ago, scott. the stock came down about three points when word came out there was one fire on one boeing plane. you and i had the discussion on air, i said, i missed it. i wanted to get in down around 74 because it looked like a one-time thing. you buy that. wouldn't have any long-term impact on the company. now you look at it. this isn't a one time or two time or ten time thing. this is a major issue. stay away from this. let the dust settle. >> 74 is not a place to get in now. it's a place to run for the

hills in your mind. >> i wouldn't be buying it here. too much headline risk. >> josh brown, nice rebound from apple. over 500 again. does it hold? how important is it that it does hold? >> i think right now you're in the dark. you have technicals to work with and not fundamentals. a lot of the technicians were talking about where support should be. most were saying somewhere around the 460s. we didn't get there. we have this bounce. i don't know how long that holds. what i can tell you is they don't come in with over $13.5 a share a week from today and at least $54.5 billion in revenue, this is going to revisit those 480 levels and much worse. >> enis, facebook. you've been all over this one. graph search. >> yeah. >> huh? what? >> i actually think the -- >> who? >> i actually think the product is what facebook should have been doing for a long time. i think people were expecting facebook to try to monetize the billion users, but do it in the

search space where it's much easier to attract advertising dollars. having said that i am not a buyer of facebook here. i have a range trade. i think the stock is stuck between 33 and 27 to digest and consolidate the gains. >> there's commentary all over the street today. they seem to like it. they seem to say that people like you, guys on the street, they don't get it. but it's good. that it's a strong potential to generate revenue. i heard that a lot today. >> i agree with that. but the stock is up almost 70% from the november lows to the highs a couple days ago. there's a lot of -- there's a lot of value already priced into the stock. there's a lot of expectation already priced in. i think you have time to wait for the stock. >> classic sale on the news -- >> this thing is a beast right now. we talked about this from the beginning. it was a momentum stock with no momentum. now it has the momentum. really if you're looking to be an investor in this name, this is probably not where you would sell. it's where you would be thankful for the fact it's cooling off. >> let's ask an investor in the

name. murph. >> this is a classic buy the news. stock sold off on this news. gives you another re-entry point under 30. still going to $38. next up on "halftime" jejd dare value investor bill nygren gives us his top tech pick. ebay's soaring 70% over the past year. will the rally keep going after the company posts its key earnings report tonight? two traders, one stock. we're going to debate it when "halftime" comes back. >> fast money isn't just about a bull market. could be going up, down or sideways. >> in the blink of an eye everything changes. you've got to be able to surround the raid. >> we're all doing what we do for a living, and we're all together as a team. but we all come at it from a different perspective. >> it's all about moving the odds into your favor. >> it's really what drives out the value of the show. >> i am jon najarian. i am "fast money." >> i am stephanie link. i am "fast money." >> i am steve grasso. i am "fast money." she keeps you guessing.

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which have snapped back as well and are sitting above $500. big story yesterday, of course, was when apple dipped below and actually closed below $500 a share for the first time in a year. we're watching all of that right now. let's go to our conversation now with bill nygren. he's oak mark fund portfolio manager. has $11 billion under management. knows how to put it to work effectively as well. he has long been cdere of the top fort folio managers in the business. joins us live from chicago. good to have you on the show. >> thank you. thanks for having me. >> how do you see things as we sit here today? again, the dow is down for the first time in five days. but overall the markets are looking pretty good. >> yeah. at oak mark we take a really long-term view. we think of ourselves more as taking a private equity focus to public companies. so we think about where we expect stocks to be three to five years down the road. and i think all the signs are positive. stocks yield more than bonds. their pe's are below historical

averages. their balance sheets are better than they've ever been. i think it is easily the best alternative out there for long-term money. >> you have a fund that is heavily weighted towards financials. can that group perform as well as it did one year ago? >> well, i don't know if it can perform as well as it did a year ago. but i think -- i think the industry is still very cheap. as an example, one of our largest holdings is bank america. it was kind of a poster child for poor performing banks during the crisis. it has emerged as one of the strongest financial money center banks. stock still sells just over half of book value. we think even though the earnings reports will for a few more quarters be muddied by costs for mortgage litigation going through their income statement, that the core earnings of the bank will be getting closer and closer to a reasonable return on equity. something like $2 a share within a couple years. and at 11 and change it's a pretty cheap stock.

>> the street seems, i guess, confused about what jpmorgan delivered today. whether it was good, just eh, or whether it was bad. it's one of your top holdings. what's your take? >> again, we -- we don't change our opinion much on one quarter's earnings. but i think this quarter as well as previous quarters, as with bank america, are showing that the core earnings of the company are strong and they're getting better. the company's returning its excess cash flow to shareholders. both through dividend and share repurchase. so we continue to like jpmorgan a lot. >> you have a good exposure to technology with names like oracle, texas instruments and intel. but i think folks watching right now may be a bit surprised at what your top tech pick actually is as we sit here and talk to you today. >> well, we've -- we've had a big position in dell. and we did well last year despite our dell position rather than because of it. the speculation on dell i think is driving investors to focus today on a couple of the assets

that have been kind of hidden. one is their very strong liquidity position. dell has something like $19 billion on its balance sheet of cash investments and finance receivables. that's getting awfully close to the market cap of the company. then, secondly, investors have thought of this company as primarily a declining pc business. when, in reality, more than half their earnings are coming from services, security, servers and, you know, areas away from pcs. more than half the income. and that area is growing nicely. company is starting to report earnings, by the way, showing the non-pc earnings as a separate segment. so we'll be able to audit management's comments on those earnings going forward. >> so when you cut through all the noise that's out there about dell right now, what are your expectations if the company's going to go private or not? >> well, i know on your channel you've been talking about a number that's something -- something beneath what we hope

the business is worth. our expectation is that the board would have to consider not only any offers from a management group, but make it an open process to any outside bidders. and also consider possible restructuring steps as a public company. our belief is that would lead to a higher number than where the stock is today. >> interesting view. bill, great to talk to you as always. >> thank you. >> bill nygren of the oakmark fund. guys, let's talk about it. j.b., take dell. >> dell is interesting because valuation talk for this deal could be 13 bucks, 14 bucks. >> that's what faber's reporting. >> i don't know i would dive into the stock. there might be some letdown if it doesn't happen. what makes it interesting is, it allows you to look at some of these other tech names that have kind of been rallying for the last few months because maybe some of them are just written off too much, too hated on the street. obviously rim is an obvious example of that. i think it's worth looking at some old tech names. maybe ebay -- maybe emc doesn't get enough attention. there are a lot of them out

there. >> it's interesting a big value guy like nygren has been in dell for a while. he's liked it for a while and thinks it's worth more than what they're even talking about it could be worth now in a bid to take it private. pete? >> you talk about value. he's one of the guys out there right in front of everybody talking about bank of america. i think the other read through is he's very strong in the industrial space. he's talking about emerging market growth as one of the reasons why he likes the industrials. i'm looking at names like ge. i'm looking across a lot of the names he owns. just amazing. i love this guy. we have the same portfolio. >> i was thinking of that, too, as we were having the conversation. >> i agree completely. he's looking at financials, looking at tech, looking a industrials. i believe industrials are the best place to look coming into the first half of this year. i'm with bill. i like a lot of the names in his portfolio. >> if the coat tails fit, ride them. coming up on halftime, is your money better off in stocks or bonds this year? blackhawk's rick rieder makes a big call next up on "halftime." [ all ] fort benning, georgia, in 1999.

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welcome back. when one of the top fixed income guys on wall street says you're better off in stocks, you take

notice. we certainly did. because that's exactly what blackrock's rick rieder thinks. he joins us live from new york city. welcome back to "halftime." good to see you. >> thank you very much. thanks for having me. >> why stocks over bonds? >> well, i don't think it's a fair fight today. i think the -- you get the 10-year treasury at 1.80. aggregate index at 1.70. the upside potential in fixed income is pretty limited this year. we run numbers. we actually look if rates go to zero other than the long bond where you actually get the aggregate index can only generate about a 6% return at best. i think fixed mcwi eed income w probably have an okay year. value equities are attractive. when you actually search out income in the world today, it's actually interesting that if you assume dividends are income, which i would argue is a reasonable argument, it's actually a good deal given what's happened over the last few years a good deal of income comes from the equity market. >> mm-hmm. it's interesting you're

predicting the ten year. the yield is going to end the year at 2.25 to 2.50. does that assume you're going to get the great rotation, then? or is that going to force the great rotation finally from bonds into stocks? >> yeah. i actually don't think you get a great rotation. i do think what'll happen is the marginal cash will end up -- will tend to go in the equity market. we think -- by the way, it's not going to be in a straight line towards higher rates where you have to go through this process around the debt ceiling, the sequester. so i think you could have interest rates that actually trend down a bit going into that and the uncertainty around that. i think moving back to a 2.25, 2.50. there's no doubt that people will start to look at statements and think about what the -- that there is some negative asemitri to the fixed income market today. the one part of this we're talking about is the front end of the curve is going to stay -- is going to stay low. the fed's not going to move in terms of where they are in the funds rate for a long time. so the front end 5-year and in

fixed income i still think is going to be in pretty good shape. it's the back end where i think you could see some pressure. >> rick, it's josh brown. in the wealth management world one of the things you hear a lot of consternation about is this massive shift into both junk bond etfs and short term junk bond etfs. obviously you've got products in the space as well. yields now a touch under 6% on those products. does that concern you? do you think that has anything to do with people tepidly dipping a toe into stocks but not really so they split the difference? how would you characterize what we're seeing there? >> i'd say there are a couple things. the high yield returns, high yields have generated returns at or better than equities with much lower volatility over the last few years. i could definitely see investors wanting to still own that asset class. i also would argue that default rates in high yields should stay

relatively low. very low over the next year. if you believe the economy is stable which we do. i still think the high yield market will generate couponed return this year. maybe a touch better. quite frankly we'd love to see spreads widen out a little bit. we've had quite a rally at the beginning of the year, actually toward the end of last year into the beginning of the year. we'd love to see it back up a bit to create better value in the high yield market. i still think it's going to be a good year especially if we believe equities are going to have a solid performance. >> enis? >> enis taner. you mentioned global markets the yields coming down. what do you think about emerging market bonds? i know you've mentioned you like them. but the yield differential between developed markets and emerging markets is certainly compressed in the last year. >> yeah, yeah. enis, the story is everything compressing in the last year. it is -- searching out opportunity becomes the upside is limited given where spreads have gone to. we do think, though, that there are still -- you're seeing in asia, parts of latin america, you're still seeing decent

value. some of these names coming to market. i say the same thing i've said about high yield. we'd love to see -- in fact, over the last couple days a little pressure in the markets. a little bit. you're starting to see some better valuations again. but i still think the emerging world, not just in 2013 and 2014 and beyond, new companies coming to the market. big financials, industrials are going to be issuing into the marketplace whereas the developed world is still delevering. the emerging world is not. we think there's still going to be some opportunities there. but your point is well taken. the opportunity is certainly a lot more dull than it was much of last year. >> rick, quickly before i let you go, does 2.25 or 2.50 on the 10-year suggest that you do not think there's a bond bubble? >> i don't. you know, we've been on this show -- we've talked before about it. people for two, three years have been talking about a bond bubble. i don't believe in a bond bubble. primarily bubbles burst because there's too much supply relative to demand. the dynamic in fixed income

today is too much demand relative to supply. i think we live in a delevering world. the developed world is delevering. less fixed income production. you've got a fed -- we're not going to get to full employment to mid to late 2015. you've got a supportive fed. that i think you're going to see a curve steepen, a nominal increase in rates. boy, i don't think we're going to see yields back up in any significant fashion because of the demand being so prolific and continuing to be prolific. >> interesting. rick, be well. good to see you. >> thank you very much. thanks for having me. next up on halftime, ebay's big run over the past year. will it keep going or hit a wall when the company reports tonight? two traders are going to duke it out next on "halftime." change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average.

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lululemon's christine day, the yoga and workout apparel industry. >> tonight the company releases a key report where the company will be on the focus of its mobile business. should you bid on the stock ahead of its numbers? let's debate it and this is our bear boys. we have 90 seconds on the clock and josh, you are up first. >> scott, the stock is working for a reason and i got to say, i can't find anything not to like about it. you've got this long-term uptrend dating back to july. a continuation of prior one. all of the supply demand metrics the way you want it and paypal business is just tearing it up. 25% accumulative annual growth rate. that's triple the rate of growth for on-line business, period. so everything is headed in the right direction. i think you can be conservative, a stop just under 51. go long here at 53. really a great risk/we regard.

>> i'm glad you mentioned paypal. in fact, the reason why the stocks rally from $30 up to $53 is because of paypal growth rate has been so strong. but why pay for the growth of paypal when you can buy visa or master card for the same multiple and get a pure play on the payments as opposed to buying the marketplace business or on-line auctions business which is not growing. >> i own both master card and visa. >> do you own ebay, josh? >> i don't own ebay yet. but let me tell you something, if this pulls back after the earnings, i will get really interested. you can own this thing for 17 times earnings. growth rate is incredible compared to other large tech names right now and most importantly it seems to be secular. it seems not to matter what goes on global, you know, global growth et cetera. because they continue to eat share from other types of trance beingses and i think that continues. >> last word, quickly. >> yeah. i like paypal but i like master card opposed to ebay.

>> i wioppose josh because i happen to like ebay. i wouldn't go as tight with my stop because it could pull back a little. that would be an opportunity to buy more. >> coming up, we will play a little hold em fold em next up on "halftime." af gets great rews for his small business! pizza! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve great rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet?

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